THE TRINITY SITE BIRMINGHAM, ALABAMA

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T H E T R I N I T Y S I T E

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J E F F E R S O N M E T R O P O L I T A N P A R K

DESCRIPTION OF PROPERTY

The former Trinity Steel site is a 27-acre parcel of land uniquely located just west of Interstate 65 on the outskirts of both downtown Birmingham and the UAB Campus. The property is owned by Jefferson County Economic and Industrial Development Authority (JCEIDA). The site is currently zoned for heavy industrial use; however, the master plan for redevelopment calls for a mixed-use development with potential for office and retail uses. The former Trinity Steel site offers businesses and developers a great opportunity to obtain one of very few large parcels in the Central Business District area with access to UAB.

PHYSICAL CHARACTERISTICS

SIZE: 27 Acres

LOCATION: Birmingham, AL; adjacent to I-65 just west of downtown Birmingham and UAB Campus

TOPOGRAPHY: Flat terrain

ZONING: Heavy Industrial

OWNER: Jefferson County Economic and Industrial Development Authority

UTILITIES

WATER: Birmingham Water Works Board

SEWER: Jefferson County Environmental Services

NATURAL GAS: Alabama Gas Corporation

ELECTRICITY: Alabama Power Company

TELECOMMUNICATIONS: Bellsouth & additional providers

TRANSPORTATION

RAIL: Dual rail service available adjacent to site

HIGHWAY: Site is adjacent to I-65, within 1 mile to I-20/59

AIR: Nearest Commercial Service: Birmingham International Airport is located 9 miles northeast

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JEFFERSON METR

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GREAT FOR BUSINESS.

EVEN BET TER FOR YOUR B OT TOM LINE.

W H Y C H O O S E O U R S I T E ? B E CA U S E B E YO N D T H E A P P E A L O F A G R E AT M I D - S I Z E D C I T Y W I T H R I C H C U LT U R A L A N D S O C I A L O F F E R I N G S , B R I N G I N G YO U R FA C I L I T Y H E R E I S A S M A RT B U S I N E S S D E C I S I O N . W E O F F E R L O W E R TA X E S , A L O W E R C O S T O F L I V I N G A N D A C O M P E T I T I V E WA G E S CA L E . O U R C O N S T R U C T I O N C O S T S A R E A M O N G T H E M O S T C O M P E T I T I V E I N T H E C O U N T RY. S O W H E N YO U B R E A K G R O U N D, YO U W I L L B E A B L E T O D O S O E F F I C I E N T LY A N D C O S T- E F F E C T I V E LY.

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OVERVIEW OF FINANCIAL INCENTIVE PROGRAM

CITY OF BIRMINGHAM, JEFFERSON COUNTY, ALABAMA

ALABAMA CAPITAL INVESTMENT TAX CREDIT PROGRAM

DESCRIPTION:The Alabama Capital Investment Tax Credit was created in 1995 and allows new and expanding manufacturing, distribution, research and headquarter office facilities to utilize an annual corporate income tax credit to assist in offsetting their capital investment.

ELIGIBILITY: New operations or expansions of existing operations involving new capital investment of $2 million, creating 20 new jobs, and paying an average of $8.00 per hour wages, or $10.00 per hour including benefits, are eligible.

RATE: Eligible companies can take advantage of an annual State income tax credit of up to 5% of capital invested in new or expanding facilities, limited to the Alabama income tax liability generated from the project. If a company’s income is less than 5% of capital investment, the company will have a credit against all of its annual state income tax. If a company’s annual income tax is more than 5% of their capital investment, the company will receive a tax credit against the portion of their income tax equal to the 5% of their capital investment. To assure a conservative estimate, a 50% utilization should be assumed.

TERM: Eligible companies can utilize this credit for up to 20 years.

AD VALOREM PROPERTY TAX ABATEMENT

DESCRIPTION:The abatement of the non-education portion of a company’s real and personal ad valorem property taxes for up to 10 years.

ELIGIBILITY: All manufacturing with a capital investment of at least $2 million, or the lower of $2 million or 30% of their original investment in the case of expansion, are eligible.

RATE: The assessment ratio for industrial property in Alabama is 20% of market value. The millage rates in the City of Birmingham, Jefferson County and the State of Alabama are as follows:

City, County and State Mills 69.5 Mills City, County and State Educational Mills 33.8 Mills (may not be abated)

City, County and State Non-Educational Mills 35.7 Mills (may be abated)

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SALES TAX ABATEMENT

DESCRIPTION: The abatement of the non-educational portion of a company’s City, County and State sales tax on the purchase of construction materials.

ELIGIBILITY: Same as ad valorem tax

RATE: The combined City, County and State sales tax in Birmingham is 10% (Note: 1% is dedicated to education in Jefferson County and therefore not abatable).

TERM: This is a one-time abatement of sales tax before the project is placed in service.

USE TAX ABATEMENT

DESCRIPTION: The abatement of the non-education portion of a company’s use tax on the purchase of manufacturing or production equipment.

ELIGIBILITY: Same as ad valorem tax abatement

RATE: The combined City, State and County use tax rate is 4.25%

(State = 1.50%, Jefferson County = .75% of which .375% is dedicated to education and Birmingham is 2.0%).

TERM: This is a one-time abatement of use tax before the project is placed into service.

STATE INDUSTRIAL DEVELOPMENT ROAD GRANT

DESCRIPTION: The State Industrial Development Grant program may be utilized by companies to offset site development cost.

ELIGIBILITY: Manufacturers developing publicly held property for private use are eligible.

RATE: The grant size is determined by the capital investment of the project and may be as high as $150,000. This is a one-time grant; however, new grants may be obtained for each new expansion.

INDUSTRIAL ACCESS ROAD GRANT

DESCRIPTION: The Industrial Access Road Grant program may be used to develop transportation infrastructure for new and expanding industrial projects.

ELIGIBILITY: Roadwork on a public right-of-way, which is necessary for access to a project, which will create new jobs and capital investment, may qualify.

RATE: Grant requests are evaluated on a cost benefit basis, with jobs, capital investment and road costs being the primary aspects of the evaluation.

DEED/MORTGAGE TAX

DESCRIPTION: A one-time abatement of taxes associated with the creation of deeds and mortgages for a new project.

ELIGIBILITY: Any project may qualify for this abatement; however, each is evaluated by the appropriate governmental unit on a case-by-case basis.

RATE: The tax is .15% of the deed/mortgage amount.

NOTE: These are examples of the types of incentives, which may be available to a project locating in Birmingham and Jefferson County. Actual incentives are subject to approval by the appropriate governmental agency.

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TAX RATES SUMMARY 2006

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PROPERTY TAX AL FL GA NC SC TN

Inventory Property Tax Exemption Yes Yes No Yes Yes Yes Average State/Local Per Capita

Property Tax $328 $943 $776 $652 $754 $596

CORPORATE INCOME TAX

Corporate Income Tax Rate1 _6.50% _5.50% _6.00% _7.00% _5.00% _6.00% State & Local Tax Revenue from

Corporate Income $323 $1219 $568 $668 $160 $503 Federal Income Tax Deduction

without Limit Yes No No No No No

Worldwide Unitary Tax No No No No No No

Allows Fed ACRS Depreciation Yes Yes Yes Yes Yes Yes

SALES/USE TAX 4.00% 6.00% 4.00% 4.50% 5.00% 7.00% State Sales/Use Tax Rate 2.70% 2.70% 2.62% 1.20% 3.34% 2.70%

Local Sales Tax Yes Yes Yes Yes Yes Yes

Sale/Use Tax Exemptions

Manufacturing Equipment Yes2 _Yes _Yes _No _Yes _Yes Air Quality Equipment Yes Yes Yes No No Yes Water Quality Equipment Yes Yes Yes No No Yes

UNEMPLOYMENT INSURANCE

New Employer Tax Rate 2.70% 2.70% 2.62% 1.20% 3.34% 2.70% Taxable Wage Base $8000 $7000 $8500 $17,300 $7000 $7000 Minimum Unemployment

Insurance Tax Rate .20% .10% 0.03% 0.00% 0.54% 0.00% Maximum Unemployment

Insurance Tax Rate 6.80% 5.40% 2.61% 3.24% 3.34% 3.30% Average Weekly UI

Benefit per Worker $177 $226 $244 $256 $212 $210 Maximum Weekly

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TAX RATES SUMMARY 2006

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Source: Alabama Development Office, State Fact Finder, Commerce Clearinghouse (CCH), http://taxfoundation.org/variousrates.html

1_{Net effective corp. income tax rate on a graduated scale is 4.5%.}

2_{If financed through ID bonds and/or with approval by appropriate authority.} 3_{An additional tax is levied at the rate of 3% of the retail sales price.}

WORKERS COMPENSATION INSURANCE

Minimum Weekly Worker

Compensation Payment $136 $20 $33 $30 $75 $77 Maximum Weekly Worker

Compensation Payment $587 $626 $425 $688 $578 $618

GASOLINE TAX PER GALLON AL FL GA NC SC TN

$0.016 $0.136 $0.00753_{$0.0299 $0.016 $0.020} PERSONAL INCOME TAX

Per Capita Tax Revenue from

Personal Income $474 $0 $758 $873 $572 $25 Federal Income Tax Deduction

without Limit Yes No No No No No

AVERAGE SALARY AND INDIVIDUAL TAX BURDEN

Per Capita Local Tax $669 $1071 $1190 $761 $788 $825 Per Capita State Tax $1448 $1553 $1651 $1903 $1591 $1360 Annual Average

Manufacturing Salary $37,700 $40,926 $39,546 $39,567 $39,035 $40,159 Annual Average Services Salary $26,048 $27,148 $30,271 $26,266 $24,001 $27,094 State Taxes per $1000 Income $67 $61 $65 $80 $73 $57 State/Local Taxes per $1000 Income $93 $100 $107 $103 $105 $90

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L O C AT I O N ,

L O C AT I O N .

H O W M A N Y D I F F E R E N T FA C T O R S A R E Y O U TA K I N G I N T O A C C O U N T W H E N S E L E C T I N G A S I T E ? T H E TA X R AT E , T H E W A G E S , T H E I N F R A S T R U C T U R E . . . W E K N O W T H E K E Y W I L L B E A C C E S S A N D P R O X I M I T Y T O Y O U R C U S T O M E R S . I T ’ S N OT E A S Y T O F I N D T H E P E R F E C T S I T E L O C AT I O N . T H AT I S U N T I L N O W. W E L C O M E T O J E F F E R S O N M E T R O P O L I TA N PA R K .

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MARKET ACCESS

AIR: Twenty-one freight carriers and services, as well as more than twenty freight forwarders, serve the area from the Birmingham International Airport and an adjacent Foreign Trade Zone. Ten scheduled passenger airlines serve virtually every major U.S. city from Birmingham.

HIGHWAY:Three interstate highways and four major federal routes serve Jefferson County. Convenient access allows two-day truck delivery to over 70% of the U.S. market through over ninety common carrier facilities located in the Jefferson County area. Jefferson Metropolitan Park is approximately one mile from I-20/59, which serves as an east/west bypass, as well as a direct connection to I-65. The north/south interstate corridor I-459 is approximately two miles from Jefferson Metropolitan Park and it runs north/south through Jefferson County.

HIGHWAY MILEAGE FROM BIRMINGHAM TO SELECTED CITIES

Source: Rand McNally Atlas

Port Birmingham is the largest inland shipping center of general

commodities in Alabama. Located on the Warrior River, it connects to the Tennessee-Tombigbee system and over 16,000 miles of navigable rivers from the Port of Mobile on the Gulf of Mexico to the Mississippi via the Tennessee and Ohio Rivers. Eight barge lines offer shipping in and out of Port Birmingham. Port Birmingham has three privately owned multi-purpose terminals offering competitive services to area industries.

Destination City

Highway Mileage

Atlanta, GA 148 Baltimore, MD 771 Charleston, SC 451 Charlotte, NC 391 Chicago, IL 659 Cincinnati, OH 641 Dallas, TX 635 Houston, TX 669 Jackson, MS 245 Jacksonville, FL 470 Knoxville, TN 256 Louisville, KY 360 Memphis, TN 250 Nashville, TN 194 New Orleans, LA 346 Orlando, FL 551 St. Louis, MO 512 Washington D.C. 740

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J E F F E R S O N C O U N T Y

A B E T T E R P L A C E T O L I V E .

O V E R T H E PA S T T W E N T Y Y E A R S , A M A Z I N G T H I N G S H A V E H A P P E N E D I N T H E B I R M I N G H A M A R E A . W H E R E O N C E W E W E R E D E P E N D E N T O N S T E E L , W E H A V E S I N C E F O R G E D A T H R I V I N G , D I V E R S I F I E D E C O N O M Y B A S E D O N H E A LT H C A R E , E D U C AT I O N , F I N A N C E , S E R V I C E A N D M A N U FA C T U R I N G . E V E N B E T T E R , W E A R E K N O W N A S A W O N D E R F U L P L A C E T O W O R K , S H O P, P L AY, P E R F O R M , A N D M O S T O F A L L , L I V E .

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DEMOGRAPHICS – JEFFERSON COUNTY, ALABAMA

BASE DEMOGRAPHICS 2006 Total Population 666,199 Median Age 37.3 Total Households 270,029 POPULATION BY SEX 2006: Male 315,893 Female 350,306

POPULATION BY RACE & ETHNICITY 2006:

White 375,903 56.4% Black 269,233 40.4% American Indian/ Alaska Native 1,521 0.2% Asian 7,805 1.2% Pacific Islander 221 0.0% Other Race 5,312 0.8% Two or More Races 6,204 0.9% Hispanic Population 13,769 2.1%

INCOME:

Median Household Income $41,897 Average Household Income $60,330 Median Family Income $51,659 Average Family Income $70,819 Per Capita Income $24,715 Median Disposable Income $34,697 Average Disposable Income $49,857

POPULATION BY EMPLOYMENT:

Total Businesses 24,797 Total Employees 221,404 Percent in White Collar Jobs 64.9% Percent in Service Jobs 15.4% Percent in Blue Collar Jobs 19.7%

HOUSING UNITS:

Owner Occupied 61.5% Renter Occupied 19.0%

Vacant 9.4%

Median Home Value $117,337

Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2006 and 2011. Via STDB online.

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EDUCATION

Jefferson County is home to “America’s Best High School”according to Newsweek.

Newsweek magazine listed Jefferson County International Baccalaureate School the number one high school in the United States.

Jefferson County is also home to five of the state’s highest-ranked high schools. With test scores above the national average, Jefferson County has many excellent choices in public, private and alternative education. One example is the Alabama School of Fine Arts (ASFA), a $17 million campus in the Arts and Sciences to grades 7-12. ASFA offers a tuition-free education to Alabama residents.

Jefferson County is also the home of five colleges and universities, three law schools, and five junior colleges and trade schools. These schools have a combined enrollment of over 88,000 students.

The University of Alabama at Birmingham (UAB) is the largest postsecondary

educational institution in Jefferson County. UAB features a wide range of undergraduate, graduate and professional programs, as well as a nationally ranked medical center, which consists of the Schools of Medicine, Dentistry, Optometry, Public Health and the School of Health Professions. UAB is the third largest college in Alabama with a total enrollment of over 16,000 students.

JEFFERSON COUNTY REGIONAL AREA POSTSECONDARY

EDUCATIONAL INSTITUTIONS ENROLLMENT – FALL 2006

COLLEGES AND UNIVERSITIES

Birmingham Southern College1 _1,239

Jacksonville State University2 _8,857

Miles College1 _1,735

Samford University1 _4,507

Southeastern Bible College1 ₂₀₈

Stillman College2 ₈₀₀

Talladega College2 ₄₂₅

University of Alabama at Birmingham1 _16,575

University of Alabama, Tuscaloosa2 _23,813

University of Montevallo2 _2,895

TOTAL 61,054

TECHNICAL AND COMMUNITY COLLEGES

Bevill State Community College2 _3,837

Central Alabama Community College2 _2,283

Gadsden State Community College2 _5,208

Jefferson State Community College1 _7,628

Shelton State Community College2 _5,488

T.A. Lawson State Community College1 _3,145

TOTAL 27,589

1

Located in Jefferson County

2

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EMPLOYMENT BY SECTOR (2006-2007)

WAGE & SALARY EMPLOYMENT (NON-AGRICULTURAL)

Birmingham-Hoover, Alabama Metropolitan Area (annual averages in thousands)

INDUSTRY 2007 2006 NET CHANGE % CHANGE

WAGE & SALARY TOTAL 535.7 532.5 3.2 0.60%

GOODS PRODUCING 82.7 83.0 -0.3 -0.36%

Natural Resources & Mining 2.8 3.2 -0.4 -12.50% Construction 35.7 35.4 0.3 0.85% Specialty Trade Contractors 22.0 21.7 0.3 1.38%

Manufacturing 44.2 44.4 -0.2 -0.45%

Durable Goods 31.6 31.7 -0.1 -0.32% Primary Metal Manufacturing 8.8 8.8 0.0 0.00% Nondurable Goods 12.6 12.7 -0.1 -0.79% Food Manufacturing 4.4 4.4 0.0 0.00%

SERVICE PROVIDING 453.0 449.5 3.5 0.78%

Trade, Transportation,

Warehousing & Utilities 115.0 114.0 1.0 0.88%

Wholesale Trade 31.8 31.4 0.4 1.27% Merchant Wholesalers 16.7 16.8 -0.1 -0.60% Retail Trade 62.3 62.2 0.1 0.16% General Merchandise Stores 13.8 13.8 0.0 0.00%

Utilities 7.0 6.8 0.2 2.94%

Transportation & Warehousing 13.9 13.6 0.3 2.21%

Information 12.4 12.3 0.1 0.81%

Technology 7.3 7.4 -0.1 -1.35%

Financial Activity 39.5 39.6 -0.1 -0.25%

Finance & Insurance 32.5 32.7 -0.2 -0.61% Credit Intermediation & Related 16.0 15.9 0.1 0.63% Insurance Carriers & Related 14.9 14.8 0.1 0.68%

Professional & Business Services 69.5 69.1 0.4 0.58%

Professional, Scientific

& Technical Services 28.7 28.5 0.2 0.70% Management of

Companies & Enterprises 8.6 8.6 0.0 0.00% Administrative Support

& Waste Management 32.2 32.0 0.2 0.63%

Education & Health Services 63.2 63.2 0.0 0.00%

Health care & Social Assistance 58.7 58.3 0.4 0.69% Ambulatory Health care 23.3 23.2 0.1 0.43%

Hospitals 17.7 18.3 -0.6 -3.28%

Leisure & Hospitality 46.2 44.6 1.6 3.59%

Food Services & Drinking Places 37.0 35.7 1.3 3.64%

Other Services 23.5 23.4 0.1 0.43%

Government 83.7 83.3 0.4 0.48%

Federal 9.2 9.4 -0.2 -2.13%

State 28.0 27.9 0.1 0.36%

Local 46.5 46.0 0.5 1.09%

Source: Alabama Department of Industrial Relations www2.dir.state.al.us/ces/MSA/MetroBirm.aspx

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LO CAL GOVERNMENT THAT HELPS GET IT

D ONE RATHER THAN STAND IN THE WAY.

W H E N YO U CA L L T H E J E F F E R S O N C O U N T Y E C O N O M I C A N D I N D U S T R I A L D E V E L O P M E N T A U T H O R I T Y, YO U W I L L F I N D W E A R E D I F F E R E N T T H A N M O S T D E V E L O P M E N T O R G A N I Z AT I O N S . N A M E LY, W E A R E M O R E I N T E R E S T E D I N H E L P I N G YO U F I N D T H E R I G H T L OT I N O U R J E F F E R S O N M E T R O P O L I TA N PA R K S YS T E M T H A N W E A R E I N C R E AT I N G B U R E A U C R A C Y. I N FA C T, W E H A V E S T R E A M L I N E D T H E C O N S T R U C T I O N P E R M I T P R O C E S S . W E H A V E A L S O C O O R D I N AT E D L O CA L G O V E R N M E N T, U T I L I T I E S A N D B U S I N E S S E S T O R E S P O N D Q U I C K LY T O YO U R R E Q U E S T S . O U R O R G A N I Z AT I O N I S C O M M I T T E D T O M A K I N G YO U R T R A N S I T I O N T O O U R C O M M U N I T Y T H E M O S T S E A M L E S S T R A N S I T I O N YO U R C O M PA N Y H A S E V E R E X P E R I E N C E D. D O N ’ T J U S T TA K E O U R W O R D O N T H I S ; W E W I L L L E T YO U TA L K T O O N E O F O U R M A N Y S AT I S F I E D T E N A N T S I N O U R D E V E L O P M E N T S .

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ALABAMA INDUSTRIAL DEVELOPMENT TRAINING (AIDT)

AIDT provides workforce recruitment and training needed for success of new and expanding companies in Alabama. Consistently recognized for its excellence, AIDT ranked number one among all U.S. state workforce training programs in 2004. In 2005, AIDT became the first state worker training program in the world to receive ISO 9001:2000 Certification.

AIDT services, created to assist Alabama’s economic development, are provided at no cost to employers or trainees. The workforce management system includes:

• Recruitment, assessment and training of potential employees • Development and production of job-related training materials • Provision of training facilities

• Delivery of job-specific services

AIDT also provides certified manager training and supervisory and team leadership training.

Since 1971, AIDT has assisted a variety of Alabama’s new and expanding companies. Experience with growing and changing businesses keeps AIDT trainee recruitment, selection and training services effective in meeting changing needs. Whatever an employer needs, AIDT provides support for a successful startup or expansion in Alabama.

“AIDT had a direct impact on the successful startup of Honda Manufacturing of Alabama, LLC,” said Chuck Ernst, HMA Vice President and Plant Manager. “The outstanding recruitment and training process helps us find workers.”

Trainees selected for employment perform at high production levels based on AIDT’s selection process and job-specific training of highly qualified and

experienced applicants. Job seekers must meet employer criteria to be accepted for training. Attitude is a key factor in AIDT selection.

Alabama’s first group of automotive assembly trainees visited Mercedes-Benz in Germany while the Alabama plant was being built. Mercedes-Benz USA reported, “Our first 20 team members, after about 4 to 6 weeks of training, were actually doing full-time jobs on the assembly line in Germany.”

AIDT’s job-specific, pre-employment training results in highly motivated people who perform above expectations.